Does Cancellation of Preferential Tax Policy Reduce Foreign Direct Investment Inflows？  

作　　者：Zhi Luo Chen Wang Xun Zhang 

机构地区：[1]Center for Economic Development Research, Wuhan University, China [2]School of Urban and Regional Science, Shanghai University of Finance and Economics, China [3]School of Statistics, Beijing Normal University, China

出　　处：《China & World Economy》2018年第6期97-115,共19页中国与世界经济（英文版）

基　　金：This paper was funded by the National Social Science Foundation of China （No. 16ZDA006） and the National Natural Science Foundation of China （Nos. 71773084 and 71373186）.

摘　　要：In light of recent tax cuts by the US, should China reintroduce a preferential tax policy to attract foreign direct investment？ This paper investigates whether China＇s 2008 tax policy change affected inward foreign direct investment. In contrast to previous studies, we break foreign investment down into suspect and real foreign investment using firm- level data from 1998 to 2008 and conduct a difference-in-difference estimation to determine the effect of the tax policy change on both types of foreign investment and compare these to the effect on domestic investment. The results show that the 2008 tax policy change reduced the amount of suspect foreign investment and its effect on real foreign investment was insignificant, indicating that foreign firms in China are more concerned with the investment environment and economic stability than taxes. Therefore, China should create a regulated business environment instead of readopting supernational treatment for foreign enterprises.In light of recent tax cuts by the US, should China reintroduce a preferential tax policy to attract foreign direct investment？ This paper investigates whether China＇s 2008 tax policy change affected inward foreign direct investment. In contrast to previous studies, we break foreign investment down into suspect and real foreign investment using firm- level data from 1998 to 2008 and conduct a difference-in-difference estimation to determine the effect of the tax policy change on both types of foreign investment and compare these to the effect on domestic investment. The results show that the 2008 tax policy change reduced the amount of suspect foreign investment and its effect on real foreign investment was insignificant, indicating that foreign firms in China are more concerned with the investment environment and economic stability than taxes. Therefore, China should create a regulated business environment instead of readopting supernational treatment for foreign enterprises.

关 键 词：foreign direct investment preferential tax policy suspect foreign capital 

分 类 号：F832.6[经济管理—金融学] F276.6